Health care: a cry for help from small-business owners

If you listen to talk radio or watch one of the various cable news networks on a regular basis, you probably assume that most small-business owners agree with groups like the U.S. Chamber of Commerce, which tend to oppose efforts to reform our nation's health care system.

You may also assume that because the Republican Party is perceived as "pro-business" that most small-business owners are sympathetic to the GOP's arguments against the various health reform bills being circulated in Congress: that passing the current bills will destroy small businesses by taxing them into oblivion while dispensing with free-market principles in favor of a socialist economy.

Those assumptions would be wrong.

In fact, surveys show that nearly 80 percent of small-business owners cite the rising cost of health care as their No. 1 concern, beating out energy costs and the bad economy. Almost 80 percent believe health reform is needed right now. Seventy-six percent cite a lack of affordability as the biggest reason for not offering health care to their workers. Eighty-six percent who don't offer health care to their employees say they can't afford it. Seventy-two percent of those who do offer coverage say they are struggling to pay for it. Between 50 percent and 80 percent of small-business owners in various states support the idea of employers paying into a system that would provide health coverage for their employees (otherwise known as the "public option"). Two-thirds support a financing system of shared responsibility among individuals, businesses, government and the health care industry.

A few months ago, I had the honor of speaking in Salem before a joint House and Senate health reform committee about the impact of rising health care costs on Oregon businesses. While there, I met other small-business owners who told me horror stories of cutting benefits and dropping coverage after watching their rates skyrocket more than 98 percent since 2000. I told them of my own experience moving my company from Michigan to Oregon in 2008 and as a result watching my health care costs nearly triple.

We discussed how Oregon businesses face an average annual rate increase of 12 percent (four times the rate of inflation), while our international competition can dramatically undercut our products and services, partially because their countries have universal health care systems.

Everyone agreed that something had to be done or the U.S. was certain to lose any remaining competitive advantage it once had.

Every employer I spoke to felt a moral obligation to offer some form of health coverage. Although most were resigned to a reality in which they would eventually have to slash benefits and the amount of coverage they offer because rising insurance rates were unsustainable. So I was not surprised that when asked if they would prefer that the federal government take health care off employer's backs by offering some type of public insurance, the answer was overwhelmingly "yes," even if that meant paying higher taxes.

As I said to state Rep. Chris Harker during our meeting: "Small-business owners continually hear how America is relying on us to fuel the economic recovery. .¤.¤. All we ask in return is that America help us to remove the crushing cost of health insurance from our books so we can compete again."

So as an Oregon small-business owner, I strongly encourage my fellow Oregonians to send a strong message to their congressmen and senators: Support health care reform now. It's just good business.

Paul Ward is founder of Media Mechanic LLC, a Tualatin-based Web and multimedia development company.